The Honest Company, Inc. (NASDAQ:HNST) Sees Large Growth in Short Interest

The Honest Company, Inc. (NASDAQ:HNST) saw a significant growth in short interest in July. As of July 15th, there was short interest totalling 3,030,000 shares, a growth of 129.5% from the June 30th total of 1,320,000 shares. Based on an average daily volume of 1,120,000 shares, the days-to-cover ratio is currently 2.7 days. Currently, 4.6% of the shares of the stock are sold short.

Insider Transactions at Honest

In related news, CEO Carla Vernon sold 43,317 shares of the business’s stock in a transaction that occurred on Tuesday, May 21st. The stock was sold at an average price of $2.77, for a total value of $119,988.09. Following the completion of the sale, the chief executive officer now owns 2,881,070 shares in the company, valued at approximately $7,980,563.90. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. In related news, CEO Carla Vernon sold 43,317 shares of the business’s stock in a transaction that occurred on Tuesday, May 21st. The stock was sold at an average price of $2.77, for a total value of $119,988.09. Following the completion of the sale, the chief executive officer now owns 2,881,070 shares in the company, valued at approximately $7,980,563.90. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, SVP Thomas Sternweis sold 10,047 shares of the business’s stock in a transaction that occurred on Tuesday, May 21st. The stock was sold at an average price of $2.77, for a total value of $27,830.19. Following the completion of the sale, the senior vice president now owns 237,211 shares of the company’s stock, valued at approximately $657,074.47. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 137,160 shares of company stock valued at $379,933. 8.60% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Honest

Hedge funds and other institutional investors have recently made changes to their positions in the business. EntryPoint Capital LLC purchased a new stake in Honest in the first quarter worth $27,000. Lazard Asset Management LLC purchased a new stake in Honest in the first quarter worth $52,000. SG Americas Securities LLC purchased a new stake in Honest in the first quarter worth $93,000. Echo Wealth Management LLC purchased a new stake in Honest in the first quarter worth $101,000. Finally, Raymond James & Associates grew its stake in Honest by 62.6% in the fourth quarter. Raymond James & Associates now owns 34,511 shares of the company’s stock worth $114,000 after purchasing an additional 13,285 shares during the period. Institutional investors own 45.54% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of analysts recently weighed in on HNST shares. Telsey Advisory Group reiterated a “market perform” rating and issued a $4.00 price objective on shares of Honest in a research report on Thursday, May 9th. Loop Capital upgraded Honest from a “hold” rating to a “buy” rating and set a $3.00 price objective for the company in a research report on Tuesday, June 25th. Finally, Lake Street Capital assumed coverage on Honest in a research report on Thursday, April 4th. They issued a “buy” rating and a $6.00 price objective for the company. Two research analysts have rated the stock with a hold rating and three have issued a buy rating to the company’s stock. According to data from MarketBeat.com, Honest currently has an average rating of “Moderate Buy” and a consensus price target of $4.55.

Honest Stock Performance

Shares of Honest stock traded down $0.15 during midday trading on Friday, reaching $3.88. 1,936,929 shares of the company’s stock traded hands, compared to its average volume of 1,064,323. The company has a market cap of $382.72 million, a PE ratio of -16.87 and a beta of 1.85. The stock has a 50 day moving average of $2.94 and a 200-day moving average of $3.20. Honest has a 12 month low of $1.06 and a 12 month high of $4.89.

Honest (NASDAQ:HNST) last announced its earnings results on Wednesday, May 8th. The company reported ($0.01) EPS for the quarter, beating analysts’ consensus estimates of ($0.08) by $0.07. The company had revenue of $86.22 million during the quarter, compared to the consensus estimate of $83.79 million. Honest had a negative return on equity of 17.44% and a negative net margin of 6.27%. On average, equities analysts anticipate that Honest will post -0.12 earnings per share for the current fiscal year.

About Honest

The Honest Company, Inc manufactures and sells diapers and wipes, skin and personal care, and household and wellness products. The company also offers baby clothing and nursery bedding products. It sells its products through digital and retail sales channels, such as its website and third-party ecommerce sites, as well as brick and mortar retailers.